3.2. SR 09-08-2014 �i
EOty lk Request for Action
River
To Item Number
Mayor and City Council 3.2
Agenda Section Meeting Date Prepared by
Consent September 2, 2014 Cal Portner, City Administrator
Item Description Reviewed by
Chamber of Commerce Lease Peter Beck, City Attorney
Reviewed by
Action Requested
Approve,by motion, an amendment to the lease for certain city property to the Elk River Area Chamber
of Commerce.
Background/Discussion
The City Council discussed amendments to the property lease to the Elk River Area Chamber of
Commerce at the work session on September 2, 2014.
City Attorney Peter Beck has drafted an amendment to extend the lease for up to 3 years with the option
for two single year extensions for a total of 5 years.
The Chamber Board of Directors has reviewed and approved the amendment.
Financial Impact
N/A
Attachments
■ Lease Amendment
p 0 W I R I I a
ATURE
AMENDMENT OF LEASE
This Amendment of Lease ("Amendment") entered into this day of September,
2014, by and between the City of Elk River ("Landlord") and Elk River Area Chamber of
Commerce ("Tenant").
WHEREAS, Landlord and Tenant entered into a Lease dated September 1, 1994
("Lease") pursuant to which Landlord leased to Tenant that certain parcel of real property
situated in Sherburne County, Minnesota, legally-described on Exhibit A attached hereto (the
"Land"); and
WHEREAS, Landlord and Tenant desire to amend and extend the term of the Lease, as
provided in this Amendment.
NOW, THEREFORE, Landlord and Tenant agree as follows:
L Article 2 of the Lease shall be deleted and replaced with the following new
Article 2:
ARTICLE 2.
TERM
2.1) The term of the Lease as amended shall commence on
September 1, 2014, and terminate on September 1, 2017 (the "Initial Term"),
unless sooner terminated as provided herein.
2.2) Provided the Lease is in full force and effect and Tenant is not in
default of any of the terms or conditions of the Lease, Tenant shall have the
option to renew the Lease (the "Renewal Option") upon the same terms and
conditions contained in the Lease, for two (2) one-year periods, the first of which
shall commence September 1, 2017, and terminate September 1, 2018, and the
second of which shall commence September 1, 2018, and terminate September 1,
2019. Each Renewal Option shall be exercised, if at all, by Tenant giving
Landlord written notice thereof at least sixty (60) days prior to expiration of the
Initial Term or the first Renewal Option. The Initial Term and the Renewal
Option are collectively referred to herein as the "Term." A "Lease Year" shall
mean each calendar year, in whole or in part, during the Term.
2. Section 7.2 of the Lease shall be deleted and be replaced with the following new
Section 7.2:
7.2) The parties agree that Landlord shall maintain the sidewalks,
driveway and parking areas on the Land, including snow removal from driveway
and parking areas, and that Tenant shall be responsible for snow removal from
sidewalks. Landlord agrees to repair and maintain the irrigation system for the
Land and Tenant shall properly irrigate and maintain the landscaping, including
trimming and mowing, for the Land.
3. Section 8.3 of the Lease shall be deleted and replaced with the following
Section 8.3:
8.3) Tenant shall also, as Additional Rent hereunder and at Tenant's
sole cost and expense, but for the mutual benefit of Landlord and Tenant,
maintain during the Term of the Lease (a) Commercial General Liability
Insurance in the minimum amount of $1,000,000 per occurrence; $2,000,000
annual aggregate, and (b) Equipment Breakdown Coverage on all steam boilers,
pressure boilers, or other such apparatus as Landlord may deem necessary to be
covered by such insurance and in such amount or amounts as Landlord may from
time to time reasonably require. The Landlord shall be listed as an "additional
insured on all such insurance policies.
4. Article 11 of the Lease shall be deleted in its entirety.
5. Article 23 of the Lease shall be amended as follows:
ARTICLE 23
INDEMNITY
Tenant shall indemnify, defend and save harmless Landlord against and
from any and all claims by or on behalf of any person or persons, firm or firms,
corporation or corporations, arising from the conduct or management of or from
any work or thing whatsoever done in, on, or about the Premises, and will further
indemnify and save Landlord harmless against and from any and all claims arising
during the Term of the Lease from any condition of the Premises or any street,
curb, sidewalk adjoining the Premises, or of any passageways or spaces therein or
appurtenant thereto, or arising from any breach or default on the part of Tenant in
the performance of any covenant or agreement on the part of Tenant in the
performance of any covenant or agreement on the part of Tenant to be performed,
pursuant to the terms of the Lease, or arising from any act of negligence of
Tenant, or any of its agents, contractors, servants, employees, or licensees, or
arising from any accident, injury or damage whatsoever caused to any person,
firm, or corporation occurring during the Term of the Lease, in or about the
Premises, or upon or under the sidewalks and the land adjacent thereto, and from
and against all costs, reasonable attorneys' fees, expenses, and liabilities incurred
in or about any such claim or action or proceeding brought thereon; and in case
any action or proceeding is brought against Landlord by reason of any such claim,
Tenant, upon notice from Landlord, shall resist or defend such action or
proceeding by counsel reasonably satisfactory to Landlord.
6. All other provisions of the Lease shall remain in effect for the remainder of the
Term of the Lease, as amended by this Amendment.
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LANDLORD:
CITY OF ELK RIVER
By
John J. Dietz, Mayor
By
Tina Allard, City Clerk
TENANT:
ELK RIVER AREA CHAMBER OF COMMERCE
By:
Its:
759993.DOCX
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